An “overwhelming" majority (94 per cent) of pension professionals agree that UK pensions require some form of further change, with 31 per cent expressing pessimism regarding the current system, research from Aon has found.

The poll, taken at its 2024 Pension Conference series, revealed that despite the unprecedented amount of regulatory change experienced in the last few years, less than a tenth (6 per cent) of respondents were optimistic about the UK pensions system as it currently stands.

However, respondents were more divided when asked in which areas they wanted to see the government and The Pensions Regulator make changes.

In particular, 42 per cent of respondents identified cyber risk as a top priority, while 36 per cent highlighted defined contribution (DC) small pot consolidation as a priority, followed by dashboards (34 per cent) and defined benefit (DB) surplus refunds (34 per cent).

“Despite significant regulatory change to the UK pensions system in the last few years to both DB and DC pensions, it is sadly telling that over 90 percent of respondents stated that the UK requires yet further changes to its pension system," Aon partner and head of UK retirement policy, Matthew Arends, said.

He also suggested that these results are “all the more pertinent” given that Aon’s Global Pension Risk Survey (GRPS) showed that regulatory burden and political uncertainty are big concerns for schemes.

Indeed, Aon's GRPS highlighted the industry’s concern with the risk posed to trustees and sponsors from the pace and volume of regulatory change that has recently occurred, with regulatory risk identified as the most pressing concern facing DB schemes.

“Respondents to the GPRS highlighted both the volume of regulatory change already required of schemes and the full pipeline of changes that are on the way as creating significant resource challenges," Arends continued.

"Even with this background, our pension conference attendees overwhelmingly responded that further change is needed.

“Navigating regulatory volatility is inevitably a concern for schemes, with trustees and sponsors facing challenges in ensuring risks and opportunities are prioritised appropriately.

"Even so, further changes to the system are still perceived as a way to provide better outcomes."

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